Financial Performance - Revenue for the six months ended June 30, 2024, was RM 59,634,000, a slight increase of 0.9% compared to RM 59,123,000 in the same period of 2023[2] - Gross profit decreased to RM 12,391,000, down 3.1% from RM 12,793,000 year-on-year[2] - Other income rose significantly to RM 2,843,000, an increase of 47.8% from RM 1,924,000 in the previous year[2] - Profit before tax decreased to RM 6,156,000, down 21.2% from RM 7,815,000 in the same period of 2023[2] - Net profit for the period was RM 4,074,000, a decrease of 26.5% compared to RM 5,541,000 in 2023[2] - Total comprehensive income for the period was RM 4,444,000, down 29.7% from RM 6,317,000 year-on-year[2] - Basic and diluted earnings per share were RM 0.86 sen, compared to RM 1.17 sen in the previous year, reflecting a decrease of 26.4%[2] Assets and Equity - Total equity attributable to owners of the company increased to RM 165,524,000 from RM 160,579,000, representing a growth of 3.7%[4] - Total assets as of June 30, 2024, were RM 177,163,000, an increase from RM 170,511,000 at the end of 2023[5] - Trade receivables as of June 30, 2024, amounted to 35,958 thousand Ringgit, an increase from 31,641 thousand Ringgit as of December 31, 2023, reflecting a rise of approximately 13.5%[27] - The group’s total assets as of June 30, 2024, included property, plant, and equipment with a carrying value of 15,337 thousand Ringgit, down from 15,593 thousand Ringgit as of December 31, 2023, indicating a decrease of approximately 1.6%[25] - The group’s other receivables, deposits, and prepayments totaled 19,928 thousand Ringgit as of June 30, 2024, compared to 21,644 thousand Ringgit as of December 31, 2023, showing a decrease of approximately 7.9%[27] Operational Highlights - The company continues to focus on expanding its distribution of animal feed additives and production of premixes, indicating ongoing investment in core business areas[6] - The gross profit for the animal feed additive segment was RM 3,294,000, while the human food ingredient segment reported a gross profit of RM 9,097,000, leading to a total gross profit of RM 12,391,000 for the six months ended June 30, 2024[11] - The distribution revenue for the six months ended June 30, 2024, was RM 47,237,000, an increase from RM 41,273,000 in the same period of 2023, marking a growth of 14.3%[15] - The manufacturing segment generated revenue of approximately 12.4 million MYR, accounting for about 20.8% of total revenue, a decrease of approximately 5.5 million MYR or about 30.7% from approximately 17.9 million MYR in the same period of 2023[34] - The distribution segment's revenue was approximately 47.2 million MYR, representing about 79.2% of total revenue, an increase of approximately 5.9 million MYR or about 14.3% from approximately 41.3 million MYR in the same period of 2023[34] Expenses and Costs - Total employee costs, including directors' remuneration, increased to RM 3,146,000 for the six months ended June 30, 2024, compared to RM 2,995,000 in the previous year[17] - Administrative and other operating expenses rose to approximately 7.6 million MYR, an increase of about 2.1 million MYR or approximately 38.2% from approximately 5.5 million MYR in the same period of 2023[38] - The depreciation expense for the six months ended June 30, 2024, was RM 859,000, slightly higher than RM 842,000 for the same period in 2023[13] Investments and Future Plans - The company plans to construct a new production facility by December 31, 2025, with an allocated budget of HKD 42.1 million[55] - The company has identified HKD 13.4 million for potential investments in companies related to animal feed additives and veterinary industries, with HKD 5.6 million remaining unutilized[55] - The establishment of a new testing laboratory is planned with a budget of HKD 3.5 million, expected to be utilized by December 31, 2025[56] - The company is actively seeking suitable investment opportunities despite a cautious approach due to the economic recovery from COVID-19[57] Corporate Governance - The board of directors confirmed compliance with the standards set out in the corporate governance code for the six months ending June 30, 2024[70] - The company has adopted the principles and relevant provisions of the corporate governance code, ensuring effective accountability and enhancement of shareholder value[71] - The audit committee, established on April 8, 2020, consists of three independent non-executive directors and is responsible for reviewing the effectiveness of the group's financial reporting system[73] Shareholder Information - The group did not declare an interim dividend for the six months ended June 30, 2024, compared to zero for the same period in 2023[24] - No interim dividend is recommended for the six months ending June 30, 2024, consistent with the previous period where no dividend was paid[45] - The average number of ordinary shares used for calculating basic and diluted earnings per share remained constant at 472,000,000 shares for both periods[23] - As of June 30, 2024, the total number of shares available for issuance under the share option scheme is 50,000,000, representing approximately 10.6% of the company's total issued share capital[68] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the six months ending June 30, 2024[69] Risk Factors - The group is exposed to foreign exchange risks due to operations in Malaysia, with potential adverse impacts on financial performance from currency fluctuations[50]
利特米(01936) - 2024 - 中期业绩